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n e w h a v e n b i z . c o m | S e p t e m b e r 2 0 2 1 | n e w h a v e n B I Z 13 We see venture capital the way you see your business. Like no one else. ctinnovations.com | 860.563.5851 proprietors seeking advice. e company plans to establish a similar program in Connecticut, he said. Tripling output Acreage Holdings, a multistate operator that employs nearly 700 people across 12 states, according to Cannabiz Intelligence, is also looking to expand its Connecticut op- erations, which currently consist of three dispensaries. "We are looking to convert [all three dispensaries] to hybrid licenses," said Carl Tirella Jr., Acreage Holdings' general manager for Connecticut, adding the company is considering adding cultivation to its local portfolio. "We're monitoring that footprint, and we're looking to enter that market, if possible." Curaleaf, which operates a medical marijuana grow site in Simsbury, plans to apply for a hybrid license and triple its local production output in anticipation of the coming recreational-use market. Curaleaf 's Regional President of the Northeast Patrik Jonsson said the company is vetting smaller entrepreneurs with whom they may enter into social equity joint ventures. He added that while large corporates like Curaleaf will produce at scale, he thinks there will be room for smaller operators making niche products and cra cannabis. at aligns with omas Macre's thinking, as he seeks to eventually expand his Torrington medical dispensary, Still River Wellness, into a vertically-integrated company that cultivates and sells marijuana. Macre, Still River's manager and co-owner, said the com- pany will apply for a hybrid license and plans to redesign its current 5,000-square-foot facility to establish separate medical and recreational-use dispensaries. Later on, he wants to open a micro-cultivation operation and delivery service, potentially with social equity joint partners. Still River currently earns about $500,000 in monthly revenue; Macre said the company can double that by add- ing just an adult-use dispensary. e build-out to create the recreational business would likely cost up to $400,000 and take about six months to complete. But the company's growth will largely depend on local officials, Macre said. "Right now our biggest hurdle is the Planning and Zoning Commission of Torrington," Macre said, noting the commission is currently considering a one-year ban on new cannabis businesses. "ere's a lot of opportunity, our priority is definitely working with Torrington." Out-of-state players looking to enter Connecticut's expected "green rush" aren't all large corporations. Smaller operators, like Massa- chusetts-based Green Meadows, are also showing interest. e six-month-old Southbridge, Mass.- based company, which grows and sells cannabis to the Bay State's medical and recreational markets, is currently testing the waters for Connecticut expansion, said CEO Bob Patton. "Right now we are speaking with Connecticut legal advisors to help us interpret … the laws in the state of Connecticut," Patton said. "From there, there will be a certain point where we will try to identify … a location." Green Meadows currently employs about 50 people at its Southbridge cultivation and dispensary facilities, and is trying to hire about 15 more, Patton said. He's interested in establishing a similarly-sized operation in Connecticut, and wants to start entering into serious talks with municipal officials by early next year, and possibly stand up an operation here by 2023. Promoting equity Vega, of the Wepa! Farms hemp company, said one of the biggest challenges in trying to enter the cannabis indus- try will likely be remaining in compliance with state and local regulations. at will require setting up a seed-to-sale tracking system for cannabis it grows and sells, establish- ing third-party audits and hiring professionals to handle stepped-up security measures. "Compliance is a third of your business [costs] at this point," Vega said. Wepa! already has some financial backing to expand operations through the Minority Cannabis Business Associ- ation's I-2 Accelerator, which partners with cannabis indus- try-focused private equity firm Merida Capital Partners. Vega said he will qualify as a social equity applicant as defined in the legalization statute and geographic standards set by the Social Equity Council, but isn't sure whether Wepa! will seek out social equity status, or go for a general application. e Social Equity Council's 15 members are well aware of concerns about large corporate operators dom- inating the recreational market, said council Chair Andrea Comer, who also serves as deputy commissioner of the state Department of Consumer Protection, the cannabis industry's main regulator. As part of the council's duties, it will suggest legislation next session that could help ensure market access to smaller players, especially those who qualify for social equity status. She noted that parts of the legislation — like a ban on awarding more than two of any cannabis license types to a single company — could help create space for local entrepreneurs. She said she wants to avoid creating a market that's only hospitable to large companies. "at's certainly not the intent of the legislation and is not something that we would want to happen," Comer said. "is really is about trying to promote equity in the marketplace." n Michael Falade of Wepa! Farms pours cannabinoid distillate. 0 $10M $20M $30M $40M $50M $60M 2022 2023 2024 2025 2026 $55.2M $3.1M Projected tax revenues from CT's recreational marijuana industry Green Haul PHOTO | STEVE LASCHEVER SOURCE: OFFICE OF FISCAL ANALYSIS

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